Elaine Walker reports in the Miami Herald that the fight over Burger King’s $1 double cheeseburger landed in court, in a debate over whether the fast-food chain has the right to set pricing.Read More »
In a new 30-second commercial from agency Crispin Porter & Bogusky, BK’s mascot, the King — armed with a flashlight and donning a hoodie — breaks into McDonald’s headquarters in the wee hours of the morning to copy the recipe for McD’s Sausage McMuffin with Egg sandwich. A voice-over says, “It’s not that original but it’s super affordable … egg, sausage and cheese on a toasted English muffin.” DDIFO MWatch the commercial….Read More »
The latest reorganization could’ve been torn from the playbook of Gordon “Greed is Good” Gekko: A troika of private equity firms, lead by the likes of Bain Capital and Goldman Sachs Funds, orchestrated a controversial public offering in May 2006 — but not before pocketing more than $700 million in fees and dividends. Financing this avarice was almost $1 billion in debt heaped on the balance sheet inherited by the new shareholders (and the equity funds still own a 32 percent stake, at an essential cost basis of pennies per share).Read More »
Janet Sparks reports at BlueMauMau that the National Franchisee Association, representing over 90 percent of all Burger King franchisees in the US, has settled two class action lawsuits with franchisor Burger King Corp. (NYSE: BKC) and its two soft drink distributors, Coca Cola and Dr Pepper.Read More »
Ron Ruggless of Nation’s Restaurant News reports that after encountering fierce pushback from franchisees over its $1 double cheeseburger promotion, Burger King said it would raise the item’s price and introduce a new value sandwich in its place.Read More »
USA Today reports that Burger King(BKC) plans to launch a massive new coffee line as it tries to overhaul its breakfast menu and boost its slumping business.
The nation’s No. 2 burger chain will add Starbucks’ Seattle’s Best Coffee to all its U.S. restaurants in a phased roll-out that begins this summer, executives told The Associated Press on Tuesday.
Numbers tell a different story of whether a Burger King’s burger promotion helped boost profits. Franchisees say the promotion doesn’t drive enough sales to offset cost.Read More »
Burger King franchisees will get to hold onto their entire soda rebate funds for now, potentially crimping the burger chain’s plan to kick off 2010 with a beefier national ad presence. Franchisees in the coming weeks will receive the full rebate, earned from buying soda syrup, from Coca-Cola Co. (KO) and Dr Pepper Snapple Group Inc. ( DPS) as Burger King has deferred diverting up to 20% of those funds to its national advertising pool due to pending litigation, a Burger King spokeswoman said late Thursday. The February payment is one of two franchisees receive annually from the soda companies.Read More »
In an ongoing dispute that could affect how the nation’s hundreds of franchise organizations set prices, the burger chain is insisting that its two beef-patty sandwich be sold for no more than $1—in line with other items on its “Value Menu.” But the company’s franchisees claim that at that price, they lose money.Read More »
Elaine Walker reports in the Miami Herald that Burger King’s franchisees say they no longer “trust” or “have confidence” in current management, so they’re going directly to the company’s board of directors with their complaints. That was the message in a letter sent by the National Franchisee Association last week to Burger King’s board of directors. The board needs to take action to repair the relationship with franchisees, which has disintegrated to a level unheard of even for Burger King, the letter said. “Your management team has pushed the franchise community to the brink,” said the letter signed by 27 franchises, including the NFA board and the heads of 21 regional franchisee associations. “We are taking this extraordinary and historic action to communicate our concerns directly to the board.”Read More »